Thursday, November 26, 2020
Home Decrypt News KuCoin CEO shares new details of $150+ million hack

KuCoin CEO shares new details of $150+ million hack

In brief

  • KuCoin has been hacked for at least $150 million.
  • KuCoin’s CEO said that this is a “small part of our total asset holdings”.
  • Tether and Bitfinex froze some of the stolen funds.

The CEO of cryptocurrency exchange KuCoin today responded to questions about a hack that resulted in at least $150 million of Ethereum tokens being drained from the exchange’s wallets, as well as millions more from other blockchains, including $13 million from Tether based on the EOS blockchain. 

In a livestream early this morning, KuCoin Global CEO Johnny Lyu said that hackers mostly stole Bitcoin, Ethereum and other ERC-20 tokens (tokens based on the Ethereum token standard), but it is still “working on the list” and “evaluating the total value.” 

According to a summary of the livestream posted on KuCoin’s website, Lyu said that the stolen funds “contains a small part of our total asset holdings,” and that the team estimates that deposits and withdrawals will be live within a week.

He also said that KuCoin’s insurance fund, started in 2018, is sufficiently large to cover for the hack. To avoid future issues of this ilk, Lyu said that the team has discarded the affected hot wallets (wallets connected to the exchanges) and “will definitely upgrade the whole risk management system of our wallet.”

And those funds flowing out from KuCoin following its announcement of the hack? “For the sake of guaranteeing the security of users’ assets, our wallet and security teams are conducting those transactions,” said Lyu.

Rich Sanders, CEO of blockchain forensics firm CipherBlade, traced some of KuCoin’s funds to a potential wallet containing 7,500 Bitcoin ($80 million). 

KuCoin is now busy working with the blockchain projects and cryptocurrency projects that received the stolen funds, to “track, block, and even fork related assets to cut the losses.”

Paolo Ardoinio, CTO at cryptocurrency exchange Bitfinex and stablecoin company Tether, said in a tweet that Bitfinex froze $13 million worth of Tether stablecoins hosted on the EOS blockchain, and that Tether froze a further $20 million worth of the stablecoin hosted on Ethereum.

Popular Articles

Compound liquidator makes $4M as oracles post inflated Dai price

The crypto market suffered a powerful crash on Thursday morning UTC, which sent prices of major currencies like Bitcoin (BTC) and Ether (ETH) tumbling...

This is how Bitcoin is coming to the rescue of companies racing against time

MicroStrategy’s adoption of Bitcoin as its primary reserve asset took the market by storm, with many arguing that the development was one of the...

Here Are the Best Bitcoin Black Friday Deals for 2020

Let’s get this out of the way: Thanksgiving is a mid-tier holiday. Turkey? It’s fine. Being pressured into giving thanks? Sure. The fraught cultural...

Polkadot long-term Price Analysis: 26 November

Disclaimer: The findings of the following article are the sole opinion of the writer and should not be taken as investment advice Following the lead...

Catherine Coley: Bitcoin Is Jumping Thanks to All the New Buyers

As of late, bitcoin appears to be traveling on a rocket ship to the moon. The currency recently struck the $19,000 price for the...

Time To Pay Attention: Where The Bitcoin Bull Market Correction Might End

Bitcoin price over the last 24 hours saw an over $3,000 crash and more than 15% wiped out from its price tag. Despite the downside,...